Company warns "an alternative business plan may have to be developed."

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UK Broadband, the company behind wireless broadband service Relish, has reported heavy losses as it struggles to convince Internet users to abandon their fixed lines in favour of 4G LTE access. The Hong Kong-owned company has reported losses of £37.5 million for 2014, almost four times as much as the year before. Turnover fell from roughly £2 million to £1.5 million over the same period.

Relish originally launched in June 2014 as an alternative to fixed line services from the likes of BT, Sky, and Virgin Media. The service boasts several key selling points over the competition: customers don't require a landline, there are no data caps, and installation doesn't require an engineer, meaning customers can get online as soon as they receive their router in the post. The service costs £20 per month for home users and £25 for businesses.

However, the service has gotten off to a slow start, despite extensive advertising on London's Underground network. While Relish promises download speeds "up to 50Mbps," it varies wildly depending on coverage and the number of simultaneous users on the network. Despite being focused solely on London, it doesn't cover every household either, with users required to use a postcode checker first.

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Initially, the company planned to launch nationwide, but this was scaled back to just London as it struggled with 4G coverage using the relatively niche 3.4GHz chunk of the UK spectrum it purchased back in 2003. Before that, the company launched an ISP called Netvigator, which later became known simply as Now. This only covered premises in Reading, and was discontinued in 2009.

In a statement to The Telegraph, UK Broadband said: "If there was insufficient customer demand for the proposed new services at price levels the company finds economically viable, an alternative business plan may have to be developed." However, it added that the directors were confident the current plan to expand beyond London using government subsidies for rural and city centre broadband would go ahead.